DMM Bitcoin , a cryptocurrency exchange based in Japan, appears to be on the verge of liquidation due to significant financial losses stemming from a hacking incident earlier this year. A breach in May resulted in the theft of approximately $320 million worth of Bitcoin , which has hindered the company’s ability to recover and continue operations.
Following the hack on May 30, DMM Bitcoin experienced a severe setback, losing over 4,500 Bitcoin from a compromised wallet. The company termed the incident an “unauthorized leak” and subsequently halted withdrawals, the creation of new accounts, and trading activities. Initially, DMM Bitcoin reassured its users, stating that all deposits would be fully guaranteed and that they would secure the necessary funds to compensate users with the help of their affiliated companies. However, despite these assurances, the scale of the loss marks it as one of the largest breaches in the region, second only to the Coincheck hack in 2018, which resulted in losses of $530 million.
In light of ongoing financial difficulties, DMM Bitcoin has decided to cease its efforts to revamp operations and is planning to transfer customer assets to SBI VC Trade, a subsidiary of SBI Group, by March. The decision to shift assets came amid the emerging challenges in the cryptocurrency landscape, prompting DMM Bitcoin to reconsider its position and strategy.
Additionally, the exchange’s parent company, DMM Group, has been facing significant operational changes. In November, DMM Crypto announced the discontinuation of its Seamoon Protocol, a Web3 gaming initiative, due to the evolving business environment that rendered the project unsustainable. This trend of centralized exchange hacks is alarming, as evidenced by several incidents in 2024, including notable breaches involving exchanges in India, Singapore, and Turkey, further underscoring the vulnerabilities within the cryptocurrency ecosystem.
